INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Allocation of Income Taxes

The following table details the total income tax provision/(benefit) allocation for each respective period.

	Year ended September 30,
$ in millions	2021		2020		2019
Recorded in:
Net income	$	388	$	234	$	341
Equity, arising from available-for-sale securities recorded through OCI	(32)		23		27
Equity, arising from currency translations, net of the impact of net investment hedges recorded through OCI	(10)		2		7
Equity, arising from cash flow hedges recorded through OCI	8		(12)		(23)
Total provision for income taxes	$	354	$	247	$	352

Provision (Benefit) for Income Taxes

The following table details our provision/(benefit) for income taxes included in net income for each respective period.

	Year ended September 30,
$ in millions	2021		2020		2019
Current:
Federal	$	321	$	215	$	286
State and local	79		49		63
Foreign	25		9		15
Total current	425		273		364
Deferred:
Federal	(28)		(36)		(22)
State and local	(6)		(3)		(1)
Foreign	(3)		—		—
Total deferred	(37)		(39)		(23)
Total provision for income taxes	$	388	$	234	$	341

Reconciliation Between Income Tax Expense and the Amount Computed by Applying the Statutory Federal Income Tax Rate

A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is detailed in the following table.

	Year ended September 30,
	2021		2020		2019
Provision calculated at statutory rate	21.0	%	21.0	%	21.0	%
State income tax, net of federal benefit	3.3	%	3.6	%	3.6	%
Gains on company-owned life insurance policies which are not subject to tax	(1.8)	%	(1.0)	%	(0.1)	%
Federal tax credits	(0.7)	%	(1.1)	%	(0.9)	%
Excess tax benefits related to share-based compensation	(0.2)	%	(0.6)	%	(0.4)	%
Other, net	0.1	%	0.3	%	1.6	%
Total provision for income tax	21.7	%	22.2	%	24.8	%

U.S. and Foreign Components of Income Before Income Taxes

The following table presents our U.S. and foreign components of pre-tax income for each respective period.

	Year ended September 30,
$ in millions	2021		2020		2019
U.S.	$	1,701	$	1,019	$	1,340
Foreign	90		33		35
Pre-tax income	$	1,791	$	1,052	$	1,375

Deferred Tax Asset (Liability) Items

The cumulative effects of temporary differences that give rise to significant portions of the deferred tax asset/(liability) items are detailed in the following table.

	September 30,
$ in millions	2021		2020
Deferred tax assets:
Deferred compensation	$	287	$	229
Allowances for credit losses	81		89
Unrealized loss associated with foreign currency translations	3		8
Unrealized loss associated with available-for-sale securities	2		—
Unrealized loss associated with cash flow hedges	9		18
Accrued expenses	46		34
Partnership investments	9		13
Lease liabilities	115		80
Other	18		16
Total deferred tax assets	570		487
Deferred tax liabilities:
Goodwill and identifiable intangible assets	(64)		(34)
Property and equipment	(85)		(81)
Lease ROU assets	(114)		(80)
Unrealized gain associated with available-for-sale securities	—		(30)
Other	(2)		—
Total deferred tax liabilities	(265)		(225)
Net deferred tax assets	$	305	$	262

Aggregate Changes in Liability for Unrecognized Tax Benefits

The following table presents the aggregate changes in the balances for uncertain tax positions.

	Year ended September 30,
$ in millions	2021		2020		2019
Uncertain tax positions beginning of year	$	45	$	42	$	31
Increases for tax positions related to the current year	5		5		11
Increases for tax positions related to prior years	2		3		7
Decreases for tax positions related to prior years	(7)		(1)		—
Decreases due to lapsed statute of limitations	(5)		(4)		(2)
Decreases related to settlements	(4)		—		(5)
Uncertain tax positions end of year	$	36	$	45	$	42